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How NFTs can bring you passive income 💸

Hey Blooming Founders,
Welcome to your weekly dose of interesting reads about startup growth and learnings on web3.

Since yesterday the Happy Holidays emails have started to reach my inbox — a clear sign that this year is coming to the end.
I’m working on some things that I really want to finish this side of the year, so I won’t be doing an end of year reflection just yet.
I did want to share though that I’ve discovered a really nice web3 community called Crypto Coven this week.
It was love at first sight in terms of the art, and I also managed to get an NFT that resembles the witch alter ago of me. Check her out here.
The mission of Crypto Coven is to welcome more people into web3 and to create an inclusive, female-first environment, where the focus is on everything but discussing the floor price. As the creator say: “The beauty and value of each witch lies in the eyes of the beholder” and I couldn’t agree more.
It’s also been fascinating to see how a female-focused collection has found organic success amongst the male NFT community.
Many are using their own witches as profile pictures in the community Discord (and sometimes even on Twitter) or are gifting the NFT to their partners with the aim of making them fall in love with web3 (cheeky tactic, but I’m here for it!).
On the startup side, there is also some awesome news to be celebrated: Pink Salt Ventures has launched as the first VC fund dedicated to female founders in London.
Kudos to Samira, whom I met 3-4 years ago when she just started as an investor! It’s great to see she is taking things to the next level.
Said this, the fact that it took until December 2021 for London to gets its first female-focused fund shows how closed traditional finance is.
Web3, on the other hand, offers a lot more opportunity for anyone who thinks they can be an investor to actually be one.
Shravan Venkataraman 🔥🚀💰
If you do it right, Crypto market can be your own small venture capital.

But that also presumes that you know how to analyse Cryptos as companies and businesses.

Learn the latter, and then you stand to run a business like a VC, with asymmetric bets one of which can do 100x.
With that, I will leave you to enjoy this week’s Interesting Reads and learn more about how to earn passive income with NFTs.
Until next Friday, keep blooming!
Lu
Founder of Blooming Founders
Mantra of the Week
“The only person who needs to believe in you is you.”
Interesting Reads
If you want to stay ahead of the content marketing curve in 2022, check this out: Content Marketing Trends to Look Out For in 2022
Does raising a large amount of capital make a startup more likely to succeed? Read more in Don’t Overdose on VC: Lessons from 166 startup IPOs
8 unexpected ways to make your paid subscription offer a success: Read This Before You Launch A Paid Subscription (If You Want It To Work)
How to grow your website traffic in 4 actionable steps: How I Tripled Organic Traffic To My Brand Site In Just 5 Months
If you want to know how to launch a SaaS business without coding experience and funding, here is what you need to know: How I started a SaaS Business Without Any Funding (or a Big Bank Account)
Learning About Web3
NFTs as passive income streams
As mentioned in last week’s newsletter, there are many different ways how NFTs can have value.
Today, I’d like to share a bit more about how NFTs could make you passive income.
The most common use case is currently within games.
Some NFTs that are simply characters in a game and their sole utility is that they allow you to take part in the game where there might be prizes to be won.
There are other NFTs that are characters in a game, but they also earn you a specific in-game token as long as you are holding it.
Oftentimes you have to lock your NFTs away to be able to earn those tokens. This is called ‘staking’ and as long as you have your NFTs staked, you cannot sell them.
So how do in-game tokens equal passive income?
Here is an example of a game that I’m part of — it’s called Feudalz. (Disclaimer: I wasn’t a gamer before doing this, so I’m learning as I go)
In the Feudalz game, you were able to mint NFTs from the genesis collection like with any other NFT drop. Those NFTs were the “Humanz” characters.
Then, you were able to stake your Humanz to earn the in-game token called $GOLDZ on a daily basis. The rarer your Humanz are, the more Goldz they are earning.
What is interesting in the game design is that female Humanz are earning more Goldz than male Humanz, because the artist who created the NFT images is a woman and wanted to use this as a mechanism to give the female characters more value (finally a wage gap in the right direction!).
Here are my two Humanz who are earning me 3.22 Goldz each per day:
The earned Goldz are stored in a vault and your vault has a certain maximum capacity. When you reach that capacity, you will need to withdraw your Goldz, or your missing out on your Humanz’ earnings.
Every time you withdraw, you will be attacked by Orcz. These Orcz are also NFT characters in the game and your job is to defend your Goldz, which you do with a virtual dice roll with numbers from 1-100.
The higher your score, the less Goldz you lose to the Orcz.
I got lucky with my first roll (a 92) and successfully defended all my Goldz. So then I received 49 Goldz to my MetaMask wallet where I can swap it to Ethereum any time.
In other words, these in-game tokens can be swapped to ‘proper’ cryptocurrencies and from there you can also convert it into fiat currency if you wanted to.
In the most basic scenario and without me doing anything else than withdrawing on a regular basis, my two Humanz are earning me 6.44 Goldz a day, which at current prices of $2.40 is about $150-190 per month (taking into account that I might lose some to Orcz at withdrawal).
However I have to note that the value of Goldz can fluctuate a lot.
There was a time when it was worth $10 per Goldz, now it’s sitting at $2.40 which is less than 75% of what it used to be worth.
If the game flops completely and the value of Goldz goes to zero, then all my earnings will be worth nothing. If the game becomes popular and more people buy Goldz to do things within the game, then its value will rise and my monthly earnings will rise along with it.
So while things could work out as passive income, it is still an investment / gamble into the game in its early stages. Do your due diligence before deciding to join and do not invest what you’re not prepared to lose.
I’m looking forward to seeing what the next stage of this game brings.
The team has just released “Landz” NFTs with the map below which will apparently give you more passive earning potential. I have no idea how this will work, but I’m already eyeing at that Bamboo Forest on the far left! 👀
Feudalz
gm Feudalz Fam!

Our plans for the near future are full of amazing things. Because of that, we wish to communicate exactly what the community can expect from this project soon and also in the near future: https://t.co/p3u1T3Y1Pb
I hope you’ve learnt something new today. If you liked this newsletter, please vote with a ‘Yes’ 👍
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Lu Li
Lu Li @houseofli

Your weekly dose of insights on NFTs, web3 and startup growth.
Until next Sunday, keep blooming and wagmi! ✨

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